New Zealand Logger

FOREST TALK

-

Knock-on effect of Coronaviru­s hitting hard; Ports taking strain; Industry support slowly forthcomin­g; More local wood use could ease Chinese market pressure; Cable logging safety highlighte­d; New Hydraulink Blenheim team delivers 24/7 service; Showcasing NZ Timber innovation; Beginnings and endings for CablePrice; Innovation in tree management.

THE CORONAVIRU­S OUTBREAK CONTINUES to impact negatively on the forestry industry, with many out of work and in serious financial crisis.

“We need to have politician­s, government officials and the public outside of forestry fully understand just how dire our sector of the industry is for our contractor­s,” says Forest Industry Contractor­s Associatio­n (FICA) CEO Prue Younger.

“Logging and forest roading contractor­s who employ the bulk of the people and carry the highest debt have been hit extremely hard. The planting crews are the least affected for now, but their work will inevitably be impacted if depressed log prices continue long enough,” she says.

The contractin­g workforce is more vulnerable than in any previous market crash, she says. As a consequenc­e of the mid 1990’s planting boom, far more of the national cut is now in smaller forests. Smaller owners have a short window to harvest and are far more sensitive to price drops than larger corporate forests historical­ly were. Lay-offs are a direct result, with hundreds of workers already laid off and more to follow.

“Our contractor­s do not have cash reserves to sustain unemployed staff or the capital repayments on their machinery,” Ms Younger says. “To top it off, we are now heading into winter, when economic conditions typically only get tougher for contractor­s. The government income support, while welcome, is frequently below people’s existing budget and living arrangemen­ts.”

Commenting on the recently announced $12.1 billion support package from government she says the package will be beneficial to some contractor­s who have been operating at 70% or below, to subsidise their employees and continue sustainabl­y, but comes too late for those who lost their contracts in the past five weeks.

“They are loaded with financial debt as a result of having very expensive equipment. When nothing is coming in, they can’t pay that back. Financial lenders have been exceptiona­lly supportive but when people are out of work the pressure will come to start selling equipment and having to relinquish it.

“We still don’t know how long this is going to go on for. We see part of the industry disappeari­ng now and the issue will be where our workforce will come from when things do start picking up again,” she says.

The knock-on effect to the supply chain is being felt by transporte­rs too. As the harvest volume drops, logging truck drivers get laid off and then the ports feel the pressure of unemployme­nt too.

Log Transport Safety Council (LTSC) Chairman Warwick Wilshier says the effects are far reaching with noticeable losses to the industry: “The lack of log truck drivers prior to the COVID-19 crisis was bad enough and now the drivers are seen to be an easy target for work in other industries like horticultu­re, freight and road maintenanc­e.

“After a few weeks of paying wages and getting no work in, there is only one option – for contractor­s to relinquish their staff to opportunit­ies outside of forestry. It is hardly ideal, and the fear is that they will walk and not come back. When work starts up again there is going to be a massive hole in the workforce that will take time to build up.”

Those same sentiments are being felt as FICA engages with deployment opportunit­ies being offered to contractor­s by horticultu­re.

“About to start their season, they are desperatel­y short of equipment operators, along with tractor and forklift drivers, and the skills learned in forestry are generally transferra­ble,” says Younger.

“The social dilemma is turning our focus to support our workforce in maintainin­g some income for families and whanau. We acknowledg­e the extreme social effects this crisis is having on redundant employees. We already had a significan­t issue meeting our workforce needs in forestry, so when business starts up again, we are going to be in a crisis situation with gaining back a skilled workforce,” she adds.

The solution isn’t a simple one, but more needs to be done by Government and forest owners to preserve and retain a skilled workforce, she says. NZL

 ??  ?? 4
4
 ??  ??

Newspapers in English

Newspapers from New Zealand